Goyal urges stronger, more balanced India-Russia trade ahead of Putin visit

Ahead of President Vladimir Putin's India visit, Goyal said the country must boost exports to Russia, noting opportunities in consumer goods, food items, automobiles and more

Union Commerce and Industry Minister Piyush Goyal on Thursday said that both India and Russia need to expand their bilateral trade with each other and also make it more balanced.

 

Speaking at the India–Russia Business Forum meeting organised by the Federation of Indian Chambers of Commerce and Industry (Ficci), Goyal said that bilateral trade is reaching $70 billion, "but we cannot rest, we need to grow, we need to balance that". 

Why is India seeking to balance trade with Russia?

In the financial year 2024-25 (FY25), India exported goods worth $4.9 billion to Russia, while its imports reached $63.8 billion, resulting in a trade gap of roughly $59 billion. The two sides plan to have a bilateral trade of $100 billion by 2030.

 

Goyal said India could expand its exports to Russia in areas such as consumer goods, food items, automobiles, smartphones and other electronics, industrial components and textiles. 

 

Adding to Goyal's remarks, Maxim Oreshkin, Deputy Chief of Staff in the Russian Presidential Executive Office, noted that India accounts for less than 2 per cent of Russia’s imports and that this share must rise to achieve more balanced trade.

 

He said India has scope to scale up exports in six key areas: agriculture, pharmaceuticals, telecom equipment, industrial components and human resources.

 

The remarks come ahead of Russian President Vladimir Putin’s state visit to India for the 23rd India–Russia Annual Summit. Earlier this week, Kremlin spokesperson Dmitry Peskov also acknowledged concerns over the trade imbalance, saying both sides are exploring ways to address it.

 

How might the two sides address trade barriers during the summit?

The issue is expected to come up during the summit discussions, with both countries likely to examine lowering duties and easing non-tariff barriers.